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Bulls Have Great Expectations: Dave's Daily

NEW YORK (
ETF Digest) -- There was little news to account for any rally on this Turnaround Tuesday given poor Industrial Production and lower than expected Housing Starts. But, bulls are looking ahead to earnings which have been much lowered and engineered to beat expectations. Goldman Sachs reported a beat ($3.92 vs $3.55 expected) and the stock rallied but now as much as the overall market. The market must smell great earnings news ahead seeing the current global economic softness as buying opportunities. There could also be some fresh money to funds as investors beat the tax deadline. That money gets invested quickly.

IBM just announced earnings that missed top line revenue estimates and stock falls. Intel (INTC) beats lowered estimates but stock is lower in after-hours trading. Yahoo (YHOO) earnings beat estimates and the stock is nearly 2% higher. Of many others, Cree Inc (CREE) shares were lower by almost 8% after its report.

There wasn't much news out of Europe today so stock bears there could take the day off while bulls could play. And, drum roll please... Apple (AAPL) shares rebounded nicely to close above $600 once again.

Bonds were only slightly weaker as stocks rose sharply. The dollar was slightly weaker with eurozone calm and commodity prices (GLD, DBC, USO and JJC) were more or less unchanged. This is a tip that investors are doing some last minute funding of their retirement accounts and commodities aren't front and center.

The Argentines know firsthand the rewards of defaulting and rationalizing doing so as the other guys fault. The country defaulted 10 years ago on $94 billion in debt after refusing to enact austerity measures dictated by the IMF. (Sound familiar?)

Fast forward 10 years and now with Moral Hazard issues shrugged-off and enabled the country has now seized YPF a subsidiary oil and gas production company of Spain's (as if they didn't have enough problems) Repsol.

"
You can have my answer now Senator, if you like. My final offer is this: nothing. Not even the fee for the gambling license, which I would appreciate if you would put up personally."

I guess doing business south of the border particularly in Buenos Aires other than skipping out on your hotel bill, is out of the question now. But corporations have short memories as do other investors.

Volume Tuesday was about average, which is to say light, for recent periods. Breadth per the WSJ was quite positive.

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